Spotify spent more than $1 billion to build a podcasting empire. It struck splashy deals with Kim Kardashian, the Obamas and Prince Harry and Meghan Markle. It paid $286 million for a pair of podcast studios and spent $250,000 and more an episode on exclusive shows to lure new listeners.

The bet hasn’t paid off.

Most of its shows aren’t profitable, according to people familiar with the matter, and the company has recently cut staff and programming to slow its losses. The company, which has struggled to report consistent profits, lost €527 million, equivalent to about $565 million, in the six months ending in June, on €6.2 billion in revenue.

[This is what happens when companies try to cash in on celebrity rather than talent. Much of this spending went to big names with little or no connection to podcasting, and in the case of Meghan and Harry, little to no connection to doing the work. Podcasting is still a viable area for investment but the margins will always be narrow, and it will take more work to find the hosts who can build audiences through compelling content rather than previous celebrity. — Ed]